Marketing Implications of Don Martin Limited - Case Study Example

Marketing Introduction Don Martin Limited has been always concerned about the quality of their services. Don Martin started his work as a car seller, but he also provided the customers with the sporting goods, bicycles et cetera. The developer of the company is known for his ability to manage stores starting from 45 squares to several blocks. This company provides the customers with a line of different goods both of brand names and of unknown developers. The developer of the company claimed that his customers have always come back to his store in spite of a wide availability of products along the street. A large store has always been a dream for Don Martin. Therefore, an increase in sales volume was also essential. Lastly, Don Martin experienced financial difficulties and he wanted to keep his money. This research paper is focused on marketing implications of the company and deals with the analysis of possible solutions for Don Martin Limited. Economic, social and political factors of the modern world are intimidating factors for many businesses. There is a need to develop innovative and challenging solutions in order to satisfy the needs and wants of the modern customers. Marketing Implications of Don Martin To succeed in different segments, Don Marti had to develop a different conception for his company. Advertising in mass media was one of the first and foremost measures taken by Don Martin. It is an incredible thing, but he spent more than $100,000 on advertising. So, the customers were aware of goods provided by the Company, but there was not enough high-quality services provided for the customers. That was the biggest challenge for Don Martin. The modern customers are very much concerned about money, because they do not want to spend extra money. There were a few options suggested by Don Martin. Some of them were credit offering for the customers or delivery services. Nevertheless, these solutions were not beneficial enough, because gas cost much; there was a need to pay for the office et cetera. Credit option was a good solution, but the Company’s developer had to pay much money for tracking correct crediting and so on. Don Martin met many challenges and it was very important to find a complex and innovative best solution. There were also many challenges in HR management. People had to work 12 hours four days a week and though employees liked their job, the employer had to put much efforts to satisfy their needs. Moreover, there were a lot of manufacturers and there was a necessity to unite some lines together. Don Martin made many attempts to impress his customers with volumes of sold goods. There were a lot of competitors, which were offering the same goods to the customers. It was really hard to compete in the business world and there was an option either to offer business for rent or to sell it right away. Price increase was a bad solution, because other stores offered the same goods at lower prices. It was really difficult to find the best solution and it took much time for Don Martin to decide whether he needed to sell something right in a right way. Don Martin tried to think harder and chose an integrative solution, which can be profitable in the future. He wanted to initiate his developments in motorcycle sphere. Income Statements of Don Martin Limited In the result of these combined actions and invented solutions, income statements of Don Martin were the following ones: Gross profit increased for 5.6%, sales wages increased for 2.2% (11.6% to 13.8%), advertising increased for 2%, balance of selling and delivery increased for 1%, occupancy increased for 2.2%, general and administration costs decreased for 1%, accounts receivable and credit increased for 3%. Total expenses reached 37.5% last year and profit loss 1.9%. Therefore, with the company’s growth Don Martin experienced numerous challenges and he had to pay more different expenses, but at the same time he had an opportunity to gain more profits. A company’s growth is a challenging process and no one knows whether this way is successful or not. Product Performance in Different Sectors Concerning product performance, Don Martin Limited has the following marketing implications: Segment 1 Segment 2 Segment 3 Product Automotive Car radio Tires motorcycles Sporting goods Housware/hardware Cameras Tools Appliances TV/Stereo Miscellaneous Price The average percentage of sales (31%) Average percentage of sales (34%) The highest and the average percentage of sales (38%) Place A block of shops A block of shops A block of shops Promo $100,000 $100,000 $100,000 Trade Analysis: distribution of products in the Company is a kind of a mess. There are many sporting goods, which are located near automotive products, houseware/hardware et cetera. Thus, it should be noted that Don Martin showed availability of a wide range of products to his customers and it was evident on entering his huge shop. To position each product as the most important one, was one of the main intentions of Don Martin. Competitive Analysis: in spite of different competitors, this shop has always been popular among the customers. The greatest contribution is a perfect advertising campaign, which cost a lot, but it was worth of investments. Don Martin borrowed many ideas from his competitors, for example, when he united motorcycles sales and automotive sales in his shop. Actually, he developed a one place, where different goods for different customers were combined. The fact that this businessman had a good sense of his customers cannot be denied. External Analysis: challenges of the Company can be explained by the times of economic crisis and the coming years of recovery, when people are much worried about saving their money. A great convenience for the customers, stability of prices and availability of required goods in one place are currently more important than being provided with high-quality services. Corporate Capabilities: Employees of the Company, which worked hard 4 days a week, but they were sure that they will be paid and will obtain social guarantees. Some of them were better aware of motorcycle industry, but Don Martin managed to combine these two spheres of interests and the workers did not leave his Company. Alternative Analysis: There is a need to keep average price for the goods provided. Extra money paid for the service or delivery is inapplicable in the modern economic context. It is better to distribute products in one place, at average price and invest money in promotion. In this case the competitors of Don Martin Limited will not be able to attract the customers by their lower prices and one place for products’ distribution is a perfect option to save money. Decision/Recommendation A target market for Don Martin is a middle-class consumer, who will analyze prices in the market and then will make his purchases. There is a need to invest in mass media promotion of the product, but only in case spent money is compensated by growing sales. There is an option to unite automotive, motor bicycle and sporting goods segments into one segment. Moreover, car radios can be united with housware/hardware, cameras, tools, appliances, TV/stereo and miscellaneous segment. Therefore, Don Martin Limited is a perfect example of an integrative approach in business, when different segments are profitable for one business. Works cited Grasby, E. et al. Business Decision Making: Text and Cases, Seventh Edition. Nelson College Indigenous, 2004. Read More